With end of long strike at Caterpillar, a blow to US labor movement
Machinists striking against Caterpillar since May 1 have voted to accept a new labor contract that calls for concessions on benefits and a virtual freeze on wages. It's not much to cheer for manufacturing workers, analysts say.
The end of a machinists' strike at Caterpillar Inc., after a 3-1/2-month standoff, not only points to the weakened state of the American labor movement, but also bodes poorly for the manufacturing worker – even those in high-skill jobs that many say are the future of manufacturing in the US.
The bitter strike ended Friday, as workers at a plant in Joliet, Ill., agreed to numerous concessions, including a virtual pay freeze. Members of the International Association of Machinists and Aerospace Workers had been on strike against Caterpillar, one of the world’s largest heavy equipment manufacturers, since May 1.
“It’s one more small piece of evidence that the lower half of the income distribution is struggling while the people at the very top are faring quite well,” says Richard Hurd, a professor of labor studies at Cornell University in Ithaca, N.Y.
The workers agreed to concessions that have become familiar in labor negotiations throughout American manufacturing. The six-year contract froze pay for older and higher-paid workers and granted a 3 pecent raise for newer, lower-paid workers. Like many manufacturers, Caterpillar pays newer workers at a lower wage scale than older workers. Workers at the Joliet plant, which builds hydraulic components for heavy machinery, earn wages ranging from $11.50 to $28 an hour.
Workers also agreed to Caterpillar’s demand that they pay more for their health insurance and switch from a defined benefit pension plant to 401(k)s. Each worker will receive a $3,100 bonus for ratifying a new contract.